BRITISH INCOME TAX.

New Zealand Herald, Volume LXVII, Issue 20554, 3 May 1930, Page 11

BRITISH INCOME TAX.

MOTION FOR REDUCTION.

SNOWDEN DEFENDS BUDGET.

VICTORY OF GOVERNMENT.

Jsy Telegraph-—Press Association —Copyright, (Received May 2. 5.5 p.m.) LONDON. Ma/ 1

The debate on the Budget was resumed by Sir Gorvais Rentoul, Conservative member for Lowestoft, who moved to reject the proposed increase in tho standard rate of income tax.

Mr. I. J. Albery, Conservative member for Cravesend, in seconding the motion, said the increased taxation was driving capital abroad. Mr. R. J. Boothby, Conservative member for East Aberdeenshire, said the giltodged market had practically collapsed sinco the Budget. Tho Chancellor of tho Exchequer, Mr. Philip Snowdcn, said he had received many expressions of approval of tho Budget, even from payers of super-tax. The 'previous Government was responsible for most of the items of increased expenditure. The Conservative policy was what was called "broadening the basis of taxation," in other words, relieving tho rich and overburdening tho poor. Tho revenue from customs and excise amounted to £250,000,000 <i year, four-fifths of which came from athe.r than income-tax payers. Although America and Germany were reducing taxation, they had 6.000,000 and 3,000,000 persons unemployed respectively. Tho ancient argument about capital being driven abroad was fallacious, nor had the high income tax or super-tax had this effect.

In spite of the alleged disastrous effects of the Budget on national credit the bank rate today had been further reduced, which every financier would admit was partly duo to his method of dealing with the debt.

The former Chancellor, Mr. Winston Churchill, said Mr. Snowdcn had revealed the spirit of class warfare, aiming not at an immediate, but a steady transference of wealth, until capitalists were entirely eliminated. There was no wonder that trade recovery was slower and more painful in Britain than in any other country since the war. More than half of the increased income tax was due to increased doles to the unemployed, who were not even asked to say whether they were genuinely seeking work.

The amendment was rejected by 255 votes to 139.